Disney CEO says cancellations 'ebb and flow' as parks suffer estimated $2B loss
The company reportedly saw more cancellations than expected
Apparently, not everyone is ready to go back to Disney World.
The Florida theme park is reportedly seeing a higher number of cancellations than originally expected as the state confronts a surge in coronavirus cases. This comes after Disney revealed how much money was lost while its parks were shut down amid the pandemic.
An increase in Florida's coronavirus cases may have contributed to a higher number of cancelations at Disney World than originally expected. (iStock)
Disney CEO Bob Chapek and Chief Financial Officer Christine McCarthy discussed the situation during a recent conference call, Deadline reports. Chapek reportedly said that cancellations were anticipated due to the coronavirus infection numbers “ebb and flow.”
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DIS | THE WALT DISNEY CO. | 113.75 | +1.77 | +1.58% |
Florida saw an increase in infections right as the park was set to reopen, however, which may have contributed to a higher number of cancellations than initially expected.
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Chapek and McCarthy did say that the park is meeting the financial criteria that the company set in order to sustain the reopening. The park is reportedly covering its costs to run, plus a little extra.
McCarthy also explained, “The per capita spend is very strong and that’s probably because people have not visited the park for a while.”
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Closing the parks was not a cheap decision for Disney, based on new reports.
Disney lost nearly $5 billion for the third quarter, USA Today reports. This reportedly includes a $2 billion loss in the parks, experiences and products segment. The company’s domestic parks, Disneyland in California and Disney World in Florida, closed down in March and remained shut for the entirety of the next quarter of the fiscal year.
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According to USA Today, Chapek discussed the situation during an earnings webcast on Tuesday, saying, “This is obviously a very uncertain time. We should be in good shape once consumer confidence returns.”